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Buy Physical Gold and Physical Silver Through a Commercial Bank and You May End Up with a Vault Full of Air
Recent news this week again proves that bankers are among
the largest charlatans in the universe. First Jim Rickards reported that a
Swiss bank refused to deliver roughly $40 million of gold bullion to a wealthy
client for 30 days and only finally physically delivered his gold when the
client brought in his lawyers and threatened to take his story to Reuters and
other syndicated financial news networks. Then later this week, James Turk
reported that he is aware of another individual that has been trying to take
physical possession of approximately $550,000 of silver for two months now
from a Swiss bank with zero luck. Turk further elaborated that the bank has
been trying to pressure the client into accepting the cash equivalent market
value of the silver rather than deliver the physical silver to the client. In
both of these cases, I presume that neither of these Swiss banks ever held
allocated gold and silver for their clients or if they did, had then leased out
the gold/silver or sold the same gold/silver to multiple clients, and thus were forced to
stonewall their clients until they could secure the physical metal. Why else would a bank take 30 days to
deliver something that was supposed to be sitting in a vault in an allocated
account?
Of course, none of this is really shocking as the two above
cases merely mirror the circumstances of the 2005 class-action lawsuit against
Morgan Stanley in which Morgan Stanley told its clients it was selling them
silver in allocated accounts and storing it in its vaults. However, when one of
their clients, Selwyn Silberblatt, demanded physical delivery, Morgan Stanley
failed to deliver, prompting the class-action lawsuit. Morgan Stanley
eventually settled the lawsuit for $4.4 million. Time after time, bankers have
been caught committing likely fraud regarding the sales of gold and silver.
This likely fraud extends to more than physical sales. In the futures markets,
bankers have been discovered to be selling 100 ounces of paper gold for every
one ounce of physical gold that actually exists in the market. With PM ETFs, it
is highly likely that multiple claims exist on whatever physical gold and
silver back the GLD and SLV, if any physical gold and silver even back them at
all.
In addition, it’s not just banks you have to worry about
these days. The incidence of counterfeit gold coins and silver coins is on the
rise along with the recent steep rise in the gold and silver price. The
Financial Times recently reported that a wave of hard to detect counterfeit
gold coins is now coming out of China. Say goodbye to the days of gold-plated tungsten and say
hello to a more complex counterfeit gold alloy consisting of 51% gold mixed
with osmium, iridium, ruthenium, copper, nickel, iron, and rhodium. Tungsten is
a hard, brittle grey metal that has the same density as gold but none of
gold’s characteristic softness. The new fake gold apparently not only has a
density similar to the real thing but also has a near identical softness and
color, qualities that suggest that metal smiths with an extensive knowledge of
metallurgy are producing the new fakes. In fact, Haywood Cheung, president of
the Chinese Gold & Silver Exchange Society, Hong Kong’s century-old bullion
exchange, said goldsmiths and jewelers in Hong Kong had recently been duped
into buying between 200 and 2,000 ounces of the new fake gold.
In conclusion, if you want to ensure that you actually possess
real physical gold and real physical silver, take two steps.
(1) Never entrust a bank to hold your physical gold and silver or you may end up sitting on a vault full of nothing but air; and
(2) When you buy from an independent dealer, perform your due
diligence to avoid purchasing fakes.
About the Author: JS Kim is the Founder and President of
SmartKnowledge Pte Limited, a fiercely independent investment research
and consulting firm. His monthly investment newsletter, Crisis Investment Opportunities, has yielded 28.12% YTD in a tax-deferred
account as of December 3rd. Since January 1, 2008, the CIO newsletter, in less
than two years, would have turned a $1,000,000 portfolio into more than
$2,000,000
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Ordered silver dollars 12/2/10, getting all kinds of b.s. from vendor. Ag now +$3
Where?,ordered 200ozs, yesterday, in hand today.
Where?,ordered 200ozs, yesterday, in hand today.
Why pay the high fees of allocated storage when you can just get a nice safe deposit box for far cheaper? You have no access to allocated storage but 24 hour vaults you can access whenever you want. Allocated storage, even with Perth, sounds like you are just asking to get ripped off.
Claymore,
In a word, solid 100+ yr old Mint, and owned by the Western Austrailia Gv't.24hr Vaults?, who's going to pay for your metals if it DISSAPEARS?.
24hr access mean you have it local, and the entire idea of Perth is offshore.
Sure as hell cannot trust the Brits, or the Swiss.
Austraila is one of the richest countries in the world.
Gold lies on top of the ground in many areas, they are flush with PM's.
And many more natural resource commodities.And their stable.
The counterfeits have shown up in HK. Does that necessarily indicate that the Chinese did it? For example the British have a long tradition of using counterfeit money as a weapon. Further if you look for a sophisticated party with a motive, a good place to start would be the entire banking establishment and their allied governments.
Thats the kind of speculative article on the part of the author of this rumor to stimulate his own business...unverifiable, therefore junk
What a great way to keep the price of gold down. Develop better fakes and publicize the crap out of them. They know that fear really motivates people. Who will want to buy gold or hold their gold if there are good chances of excellent fakes. This strategy will probably be emphasized as the JPM and Co financial manipulation strategies get exposed and overrun by the market.
Seems to me that won't work if you are buying from large reputable dealers. They have an interest in maintaining their quality and inspecting the stuff they take in. One bad article and they'd be out of business. Now buying from "a guy", a local shop or a fly by night website might be a different story.
A good point. Clearly fear has been a very good tool these past few years.
I am seeing this at the top if Blogs, anyone else?.
yep me too
GLD/SLV read their prospectus CAREFULLY...you gotta be a sucker to buy in...THEY TELL YOU right up front....i mean Legally Bullet Proofed, so don't even TRY to sue them:
""With PM ETFs, it is highly likely thatmultiple claims exist on whatever physical gold and silver back the GLD and SLV, if any physical gold and silver even back them at all.""
Same needs to be done at the Physical ETF's,and places like Bullion Vault.
The devil is in the details.What appears to be a hell of a deal on the front end, when the "small print" is read, you do not want to be on the wrong headed assumption part of it.
Basically, when one gets right down to it, there IS NO safe place for PM's except in your possession.
Period.
as i have stated this article presents more evidence that silver and gold are in severe and permanent backwardation....
the sclerotic dirigist fiat regime is witnessing its last gasps although like franco francisco may gasp on for a considerable time before giving up the ghost.
It doesn't seem likely that anyone would counterfeit junk silver. Replacing the old coins with new would be too obvious. Wouldn't work more than once. Then the only problem is where to store all that loose change so I can get at it and not get it stolen. And can I take it on an airplane? I suppose so. Just fill up a few of those trays at security. Will anyone really check to see if the coins are new or old? Will anyone really care?
With the technology avail today, I see the Numismatic coins getting hammered.
Imagine having the capabilities to mint EXTREMELY rare dated coins, and exactly as they were minted 100-120yrs ago.
As far as the dies to do it, with enough $$$$ and artisans, it would not be hard to do.
This market is where the big bucks are for counterfeiting, IMHO.
I was picking up an order, and selling last week.
There was a fellow there with a 2'x2'x4" deep box of Slabbed Gold/Plat, etc,all denoms.
His list was several single line spaced pages, and he was offloading at least 100 coins.
The value was staggering.High reliefs, rare dates, etc,etc.
I though how crazy, then I thought no smart.He had enough there, and was making a shiteload,if he turns around and buys bullion, he will have multiplied his total value many times over.
Or, he could have been just cashing out, and gettin hell outa dodge.
interesting point about getting outta numismatics.
Is anything truly real in the banking world anymore? Only if they say so, I guess, and everything else is just lies from a Wikileaks file.
That’s one reason I still like land for a physical investment. Even if its dollar value goes down, you can still see it, stand on it, raise crops on it, or build a house on it. It will always be there with some utility value.
IF, you can afford the TAXES, which may just take a lot of land owners out.
No body in their right mind would produce fake US junk silver. Old US silver is my choice for being safe. (and small enough to use).
You could have the key to the dilemma. Junk silver is a sure bet, especially if one buys in small quantities (not those $1,000 bags). I buy lots of $25 to $100 face value. Currently the prices range in the 20X face area. I see Morgans going for $20 to $25 each on a regular basis, but I'd stick with the halves, quarters, dimes. The pre-1965 silver is a good way to hold silver -- especially if the reason is to offset hard times. A silver quarter buys a nice lot of fresh corn at the farmer's market.
just make sure you're not getting fake (gmo) corn.
Geez Now Even Swiss Banks Seem To Be Crooked! I can't believe it! Geez! Chinese Fake Gold, Geez! Ballistic it went, Ballistic it'll go! What is one to do, eh? Somehow this tells me PMs are really in a "mania", something's gotta give here!
Geez Now Even Swiss Banks Seem To Be Crooked! I can't believe it! Geez! Chinese Fake Gold, Geez! Ballistic it went, Ballistic it'll go!
Well, when BurnAkey, bails out UBS, and Sweden allows centuries old privacy laws to be broken, I say SCREW them.
One more good thing about platinum. If they ever do confiscate gold/silver again then you are in the clear. It might even be the new gold if this were to happen again. You got to be thinking 7 chess moves ahead of these guys. But better get some soon. It is rare! rare! rare! You won't be dissapointed when you get it. I think I even like holding it in my hand better than pure gold. Very cool stuff. Very dense. If you don't have any you need at least a 1 oz coin. Also don't buy a bar til you get a coin because they are no fun to hold in your hand if they are covered in the plastic cert. Enjoy.
US Gv't has never confiscated Silver.
And, only ONE person was ever prosecuted in the 30's for not turning Gold in.
The idiot had too much, and tried to move it.
Not smart.
Yes but that was then. This is now. There was a huge surplus of silver back then and they probably could not have gotten away with confistcating both metals without admitting a Marxist coup. They waited til "64" to phase silver out. Today if they had to confiscated gold they would for sure have do the same with silver especialy since the people have more silver than gold and the true value of silver is much higher then they will admit to. No way they would let the people trade in silver outside the black market.
This is true. FDR's order was ignored. But that does not mean that this government will not resort to far more coercive measures.
watch out for it being declared a strategic metal
Gold mania will pop in the first quarter of 2011. All you idiots who can't get enough at $1400 will be puking it up for $1175 very shortly.
That may be - can you explain why? At the moment I can think of nothing that would encourage me to sell my gold for a fiat currency.
Ok, fellow Idiot,where do you park your wealth?.
Paper?.Besides WE will not be selling or puking our PM's in the 1st Qtr of 2011,if it goes to $1,175 WE buy more.
If it goes to $1175.00, I do not expect to be able to FIND any to buy.
LOOK at the state of the Worlds Economies, Hello?
If that happens S&P will be 900.
LOL!
That's unless we bought it for a lot less than $1175, to begin with..
I would view that as an opportunity to buy more
Is entirely possible,but rather than selling now,buying some calls on a 2X leveraged gold bear ETF can be nice insurance.
HGD.TO
So tell us genius, what should we buy? Stocks? Bonds? Dollars?
Ok. So we're going to have dollar mania in Q1? Your full of shit. I'm sending a check to my broker for 10k next week to buy Sprott Silver ETF.
My father was scammed in the early 80's by a gold coin salesman, selling American Eagles. He bought 20, 2 were real.
I am not sure how the average person makes sure it is not fake. What I have done is 1) buy Swiss Pamps with documentation, 2) take them to 2 of my in-town dealers and ask them for a buy quote. (They have not questioned the authenticity of any I have purchased), 3) say "no" to the sell offer and hope for the best.
Platinum! Can't fake the density on that one. just got some Isle of man Coins from APMEX this week. They are so sweet. I prefer it to the US $100. Also the older St. Guadens and Double Eagles would be almost impossible to fake becasue the designs are so intricate. My favorite Modern coin is the older Maple leaf with a thinner queen on. Don't care for the newer. I'm not an expert but have handled alot of coins. I think I could sniff out a fake but would like to hear more about this. I just don't believe you can fake 9999 gold so easily. American Eagles,Krugerands, and Mexico 50 pesos maybe since they have alloy in their reciepe but the pure ones I have my doubts. Just by platinum if you are confused. The price is right enough on it.
Having a practiced eye is very helpful. Beware of graded (slabbed) coins as well. The Chinese are counterfeiting collector coins in PCGS and NGC slabs! Some are showing up at coin shows. It's getting nasty out there.
Rocky, Will the counterfeit coins "ring" at the same pitch as the real thing? I would think that there would be a detectable difference in the pitch between two, correct?
One must have a practiced ear. I can drop a coin on a marble counter top and tell the difference. What you hear is a "clink" instead of that beautiful "ring" of silver or gold. Biting gold will do nothing but ruin the coin and your teeth. Telling the difference amongst the less than 90% pure silver coins is a pursuit in futility. The difference between a 1964 and a 1965 Kennedy Half is minor.
I stoped buying slabed coins after my 1st St Gauden. It's more fun to hold an AU double eagle. Also last year I had my jewler melt a 1oz credit suisse bar from California Numismatic Investments to make a couple pure rings. No problems there. Every safe deposit box in Germany is full of people's gold coins. Be warry but don't let this stop you. Inexperienced people should ask around to find out what dealers they can trust. I would trust gold more than dollars right now. Much more risk in dollars.
If you hold gold in public storage, youre only 1 government decree away from loosing it
"gold alloy consisting of 51% gold mixed with osmium, iridium, ruthenium, copper, nickel, iron, and rhodium" - I am not sure if this would be more than 25% less worth than pure gold
check www.swissquote.ch for following ticker symbols:
Best physical gold or silver storage, no lending allowed!
ZGLD or USD/CHF hedged JBGOCA
ZSIL or USD/CHF hedged JBSICA
You can redeem in precious metals, however with Gold it is 12.5kg and for Silver 30 kg.
Attention! If you invest below the bar size you can only redeem in paper! For smaller budgets go with silver, one bar/ingot costs roughly USD 30'000.
If you want some gold, travel to Switzerland, buy the gold and put it into your personal CHF 100 p.a. vault.
Stick with the bigger banks, ZKB only sells gold up to CHF 4'000, the others up to CHF 10'000.
Stay for a week in Zurich, see a couple of banks per day and party off at night.
Rat,
'Only one problem, the Swiss Banks are the worst offenders.